Announcement of IDA to Support Fourth Highway Project in Togo on May 14, 1981

(7 ' ~ FOR IMMEDIAJf RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/81 May 14, 1981 IDA TO SUPPORT FOURTH HIGHWAY PROJECT IN TOGO The International Development Association (IDA) announced today the approval of a credit of SOR 16.4 million ($20 million) to Togo for a fourth highway project. IDA is the World Bank's affiliate for concessionary lending. Funds from the IDA credit will help finance a three-year training program for road maintenance personnel, the purchase of road maintenance equipment and spare parts, and pavement strengthening on 157 kilometers of the south-north axis road between the port city of Lome and the city of Atakpame. This road, running the length of the country, links Lome to the landlocked neighboring countries of Upper Volta and Niger in the north, and has an essential role to play in the development of an efficient West African • regional transport network . A pre-investment study of the road linking the centrally located town of Notse to the eastern village of Tohoun will also be carried out. In addition, the IDA credit will help finance technical assistance to improve transport planning and coordination and railway operations. Three previous !DA-assisted highway projects in Togo have contributed to the development and maintenance of the country's road network, in particular the south-north axis road. The present project will strengthen this road and help develop the east-west axis road. Farmers and other road users will benefit from reduced vehicle operating costs, and increased efficiency of the Ministry of Commerce and Transport, which coordinates both road and rail transport. The total cost of the project is estimated at $31.2 million, to which the OPEC Fund is contributing $7.4 million. The IDA credit is on standard IDA terms of 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum, to cover IDA's administrative costs. The credit will be committed when funds are available. • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights) which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit. FORM NO. 1121 (5-76) T ECHNI CAL DA T A PROJECT: COUNTRY: .TOTAL COST: Fourth Highway Togo $31 . 2 mi 11 ion • I DA FINANCING: SOR 16.4 mill ion ($20 million), standard IDA terms OTHER FINANCING: OPEC Fund, $7.4 million Government of Togo, $3.8 million IMPLEMENTING ORGANIZATIONS:Ministry of Public Works, Mines, Power and \·later Resources (Ministere des Travaux Publics, des Mines, de 1 'Energie et des Ressources Hydrauliques) Lome, To~o Telex: 212783 IMPLEMENTING ORGANIZATION: Ministry of Commerce and Transport (Ministere du Commerce et des Transp.orts) Lome, Togo Telex: 210552 PROJECT DESCRIPTION: The project will comprise: (a) a three-year training program for road maintenance personnel, consisting of technical assistance and fellowships; (b) procurement of road mai.ntenance equipment and spare parts; (c) pavement strengthening of the Lome-Notse-Atakpame road (157 km); • (d) pre-investment studies of the Notse-Tohoun road (57 km); (e) 60 man-months of technical assistance to the General Directorate of Transport to improve transport planning ~nd coordination; and (f) 46 man-months of technical assistance to Chemins de Fer du Togo (CFT) to improve ·railway operations. PROCUREMENT: Civil works on Lome-Notse-Atakpame road will be carried out under a contract awarded after internat!onal competitive bidding (ICB) among prequal ified bidders. IDA's 7.5% margin of preference will be granted to eligible domestic contractors bidding for civil works. Road maintenance equipment will be procured under ICB procedures in accordance with Bank guidelines. Items costing under $20,000 will be procured on the basis of price quotations from competing suppliers. Domestic manufacturers will have a 15% margin of preference or the level of applicable duty, whichever is lower, in such comparisons. CONSULTANTS: Technical assistance will be procured by mutual agreement between the Government of Togo and the consulting firms which carried out preliminary work on the project. ECONOMIC RATE OF RETURN: 56% .ESTIMATED COMPLETION DATE: 1985 - 0 - •